New Labour Code [2020] and Regulations | UPSC

INDUSTRIAL RELATIONS CODE

The Industrial Relations Code combines the features of three erstwhile laws —

• The Trade Unions Act, 1926.
• The Industrial Employment (Standing Orders) Act, 1946.
• The Industrial Disputes Act, 1947.

INDUSTRIAL RELATIONS CODE FEATURES

• It introduces ‘fixed term employment’, giving employers the flexibility to hire workers based on requirement through a written contract.
• Fixed term employees should be treated on a par with permanent workers in terms of hours of work, wages, allowances and other benefits.

• They should be allotted periods and hours of work, holidays, pay days etc.
• The employee shifts, attendance, conditions for leave, termination of employment, or suspension is subjected to redressal of grievances.

CONCERNS

• Earlier, the 2019 Bill applied this to units with 100 employees or more.
• The threshold has been raised to 300 in the 2020 Code.
• The Code says any establishment that employs 300 or more workers must prepare standing orders relating to classification of workers.

TRADE UNIONS

• Where there is more than one trade union in an establishment, the sole negotiating union status will be given to the one that has 51% of the employees as its members.
• It has been brought down from the 75% requirement in the 2019 version.

New Labour Code UPSC

• Where no union qualifies under this criterion, the employer must constitute a ‘negotiating council’ .
• This will consist of representatives drawn from the various unions, with only those with at least 20% of employees as its members.

PROVISIONS ON LAY-OFF AND CLOSURE

• Prior permission of the government is needed for lay-off, retrenchment and closure .
• These are made applicable to only establishments that had employed 300 or more workers .

• A lay-off would be deemed illegal if it is effected without permission or is done despite refusal of permission.
• It will not be illegal if the employee had been offered alternative employment or cause undue hardship.
• The Code prescribes notice period and prior permission before retrenchment of anyone who has been in continuous service for a year or more.
• Such a prior permission requirement is in place also for closure of a unit, with the application to be filed 90 days prior to the intended closure.

NEW CODE AND RIGHT TO STRIKE

• No unit shall go on strike in breach of contract without giving notice 60 days before the strike.
• The code also permit strike within 14 days of giving such a notice, or before the expiry of any date given in the notice for the strike.
• Further, there should be no strike during any conciliation proceedings, or within seven days of the conclusion of such proceedings.

• Similar restrictions have been given on the employer from announcing a lock-out.